Effective Debt Recovery for HVAC Contractors: Get Paid Without the Hassle
- DebtIQ
- Jul 3
- 3 min read
Running an HVAC business in Australia isn’t easy.
Whether you’re installing ducted air conditioning in Perth homes or servicing commercial refrigeration units for businesses, cash flow is critical.
But when clients delay or avoid payment, it can quickly eat into your profits and time.
This article outlines practical debt collection strategies for HVAC contractors—so you can spend less time chasing money, and more time on the tools.
Set Clear Payment Terms from the Start
Before lifting a spanner or ordering parts, ensure your client understands your payment terms.
Too many tradies get caught out by unclear agreements.
Include the following in your quote or job sheet:
Total cost and payment schedule
Accepted payment methods (bank transfer, credit card, etc.)
Payment due dates (e.g. 7 or 14 days from invoice)
Clear mention of any late fees
For large installs, always take a deposit (30–50%) upfront.
This protects your business from late cancellations or non-payment.
Invoice Immediately After the Job
Send your invoice as soon as the job is complete. The faster you send it, the faster you’ll get paid.
Make sure your invoice:
Matches the original quote
Has all required details (ABN, date, payment methods)
Includes your payment terms again
Then follow up with a reminder schedule like this:
Day 1: Invoice sent
Day 7: Friendly reminder email or SMS
Day 14: Phone call or firm message
Day 21+: Consider escalating
Use Job Management Software to Stay Organised
Platforms like ServiceM8, Tradify, and SimPRO are perfect for HVAC businesses. You can track jobs, send quotes and invoices, and set up automatic reminders for overdue payments—all from your phone.
At DebtIQ, we also make it easy to refer unpaid invoices directly from your accounting software or job system.
Be Friendly but Firm With Your Follow-Ups
When chasing payment, be professional. Many HVAC clients (especially real estate agents or strata companies) deal with multiple invoices each week. A polite but direct message often does the trick.
Example message:
Hi Matt, just checking in on Invoice #317 for the split system install at Highgate. It was due last week – please let me know when payment will be made. Cheers, Sam – [Your Business Name]
Keep it brief. Avoid being aggressive—but don’t let it drag on.
Offer Flexibility (When It’s Worth It)
If a loyal client is doing it tough, you might consider offering a short payment extension or instalment plan. This shows you’re fair, and often helps recover the full amount without needing to escalate.
However, if a client stops responding or avoids payment, it’s time to protect your business.
Use a Local Debt Collection Partner That Understands Trades
At DebtIQ, we specialise in helping tradies, contractors, and service-based businesses recover unpaid invoices professionally and discreetly. You don’t need to go to court or waste time with slow-paying clients.
We can:
Send formal letters of demand
Contact the debtor directly
Negotiate repayment or settlement
Escalate the matter legally if required
We work on a commission basis, so there are no upfront fees. If we don’t collect, you don’t pay.
Learn From Each Late Payer
Each unpaid invoice is a chance to tighten your process. Ask yourself:
Did I take a deposit?
Was the customer slow to respond from the start?
Could I have set firmer terms?
Improve your quoting and invoicing process with what you learn. For example, require deposits for jobs over $1,000 or change terms from 14 days to 7 days for new clients.
Conclusion: Stop Chasing Invoices – Let DebtIQ Do It
You didn’t start your HVAC business to become a debt collector.
Let DebtIQ recover your unpaid invoices while you stay focused on your work.
Whether you're an air con installer in Perth, a refrigeration specialist in Sydney, or a mobile technician in the regions—we can help you get paid without the stress.
Contact us today for confidential, no-obligation advice.
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